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AN ASSIGNMENT ON SUBJECT ACCOUNTING FOR MANAGERS [NIRMA COMPANY] SECTOR: DETERGENTS Submitted by: RAMANI SAGAR ENROLL.NO:-127060592070 MBA PROGRAMME (Year 2012-2013)
C.K.PITHAWALLA INSTITUTE OF MANAGEMENT
Calculation of ratios
111
(Rs. In core)
Particulars 2008-09 2009-10 2010-11 2011-12 2012-13
Current assets 1064.35 953.72 1114.98 1597.47 1638.68 Current liabilities 325.21 398.54 387.36 1202.65 1390.63
Ratio
3.272808 2.393034 2.878407 1.328291 1.178372
Interpretation:
In last five years the current ratio is between 1.17 to 3.27 which was very good for the company. But in the last year it was 1.17 while it was highest in the 2008-09 i.e. 3.27 so compnay should take corrective action for increase the ratio. (Rs. In core)
Particulars 2008-09 2009-10 2010-11 2011-12 2012-13
Debtors 250.49 269.28 316.24 488.11 565.52 Net credit sales 3030.17 3117.95 3246.65 6231.58 2223.43
Ratio
30.1728 31.5230 35.552831 28.589884 92.83620
Interpretation:
Debtor turnover ratio was 92.83620 times in 2012-13 which shows high collection of money. But it was lower in 2011-12 i.e. 28.58984. so company should take corrective measures.
1.
Current Ratio = Current Assets Current Liabilities 2.
Debtors Turnover Ratio = Debtors Net credit sales
*365
(Rs. In core)
Particulars 2008-09 2009-10 2010-11 2011-12 2012-13
Net Sales 3030.17 3117.95 3246.65 6231.58 2223.43 Total Assets 3734.83 3742.74 3822.36 5396.84 5733.28
Ratio
.90 1.39 1.31 1.36 1.98
Interpretation:
From calculation of above toal assets turnover ratio of five different years, it interpreted that, the ratio of year 2012-13 is high so net sals for that year is more than other four years. That is
1.98.
(Rs. In core)
Particulars 2008-09 2009-10 2010-11 2011-12 2012-13
Net Sales 3030.17 3117.95 3246.65 6231.58 2223.43 Working Capital 374.23 359.40 610.29 374.23 359.40
Ratio
8.101488389 8.669643851 5.31129463 8.101488389 8.669643851
Interpretation:
From calculation of above working capital ratio of five different years, it interpreted that, the ratio of year 2010-11 is high so net sales for that year is more than other four years. That is
8.669643851.
3.
Total Assets turnover Ratio = Net Sales Total Assets 4.
Working Capital Ratio = Net Sales Working capital

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